To achieve an equilibrium position, the consumer must buy so much of each commodity whose price is equal to its

Answer Details

To achieve an equilibrium position, the consumer must buy so much of each commodity whose price is equal to its "marginal utility". Marginal utility is the additional satisfaction or usefulness that a consumer derives from consuming one more unit of a good or service. As a consumer purchases more units of a good, the marginal utility of each additional unit consumed decreases, meaning that the consumer is willing to pay less for each additional unit consumed. To achieve equilibrium, a consumer will continue to purchase additional units of a good until the marginal utility of the good is equal to its price. At this point, the consumer is no longer willing to pay more for the good than the additional satisfaction they will receive from consuming it. For example, if a consumer is considering purchasing a second slice of pizza, they will compare the marginal utility of the second slice to its price. If the marginal utility of the second slice is greater than its price, the consumer will purchase the second slice. However, if the marginal utility of the second slice is less than its price, the consumer will not purchase the second slice, as they will not receive enough additional satisfaction to justify the cost. In summary, achieving an equilibrium position in consumption requires the consumer to purchase additional units of a good until the marginal utility of the good is equal to its price. This ensures that the consumer is maximizing their satisfaction while also taking into account the cost of the good.